Hilton Food Group and supermarket chain Woolworths have extended their meat supply agreement, which will see Hilton Foods Australia (HFA) continue to supply value-added and packaged meat products for a further 15 years.
HFA will also take full control of meat processing plants in Bunbury and Truganina in Australia from 1 July 2018 as a result of the agreement.
The Bunbury and Truganina plants were previously operated by Woolworths Meats Co Pty, a joint venture between the two companies, and the operating assets are currently owned by Woolworths.
HFA’s operation of the two plants will be subject to a two-year transitional agreement, after which Hilton will purchase the facilities outright for AUD 85 Million ($66.9 million).
Hilton has also announced that it will commission a new meat processing plant in Queensland during the transition period.
Robert Watson OBE, chief executive of Hilton commented: “We look forward to welcoming the Woolworths employees in Bunbury and Truganina to our team.
“We have been working closely with Woolworths for five years and we have a deep understanding and respect for each other. Our long-term partnership with Woolworths is growing and this is the next phase of an even stronger relationship.
“The long-term contract between us displays the mutual trust we have in our partnership and Hilton looks forward to working with the Woolworths team to strengthen further our world-class meat offer in Australia.”
Pat McEntee, director of meat at Woolworths said: “Woolworths is pleased with the value the current joint venture has created within its meat supply chain and is excited to extend the partnership with Hilton to deliver affordable, innovative and convenient protein choices for its customers.”
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